Forex robots analyzing the market situation
Forex advisor or robot is a program for automatic trading, which means analyzing the market situation based on the rules of a specific strategy, entering and exiting the market, setting the position size, as well as restrictive orders without the participation of a trader.
All advisors vary depending on:
- by the type of strategy used;
- by the quality of coding;
- by the ratio of profitability / risk;
- by availability (paid / free).
Automatic trading with their use is available both in the MetaTrader 4 terminal and in MetaTrader 5.
Forex robots vs self-trading
Auto trading can be profitable, but it also has drawbacks.
Key advantages of forex advisors:
- acts strictly within the framework of a given algorithm;
- not influenced by emotional factors;
- errors due to the human factor are excluded;
- can work 24/7.
The main disadvantages of trading robots:
uses only elements of technical analysis, namely, indicator signals;
to write a trading robot yourself, you need knowledge of the MQL programming language;
previous profitability is not a guarantee of profitable trading in the future.
All these pros and cons, of course, are relative, but there is a fundamental difference between automatic and manual trading - this is the human factor.
The robot makes a decision to open and close a trade only when appropriate signals of a trading strategy appear. If a non-standard situation arises, he will continue to work within the framework of the logic embedded in it.
At the same time, the Expert Advisor is not able to assess the influence of fundamental analysis factors, as a trader would do before making a decision to enter the market. But the program will never make the mistake, which is often encountered by beginners, by opening a position of the wrong size or direction.
The Expert Advisor does not get tired and can trade around the clock. But it can be both profitable and unprofitable trading. A long series of negative trades would stop the trader, but the robot will trade until it runs out of funds or is manually terminated.
A trader's profitability depends on his knowledge, practical skills, adherence to the rules of money management and control of his emotions. The profitability of the Expert Advisor depends on the strategy incorporated in it, correctly written code and correct settings.
What is the difference between an advisor and an indicator
A trading indicator is also a program based on a graphical interpretation of historical data. It examines the selected parameters of a currency pair at a certain time interval (volatility, volumes, etc.) and, depending on its type, displays them graphically in the form of lines, bars and other objects.
Several forex indicators make up a trading strategy. A certain combination of their readings is considered a signal to open or close a position. Since the robot is based on a strategy, a technical indicator is one of its constituent parts.
The main difference between an indicator and an Expert Advisor is that the indicator only displays certain data, and the Expert Advisor, based on this data, makes decisions about entering or exiting the market.
How to choose an Expert Advisor for MT4
To choose a trading robot, you should follow several rules:
Use only trusted Internet resources: the MetaTrader Market application store, the broker's official website, or reputable Forex platforms.
Choose according to the situation in which you intend to use it. If this is a trend trading, then a scalper advisor will not be suitable for this.
Declared high returns are almost always a sign of high risks. The maximum risks inherent in the Expert Advisor should not exceed the money management rules adopted by you.
The advantage will be the ability to test the demo version of the advisor or the presence of monitoring of its trading in real time on the Myfxbook service.
Trading robots in MT5: new advantages
The Expert Advisors for the MetaTrader 5 terminal differ from the versions for the MT4 platform in a wide variety and the ability to add new parameters.
The extended functionality of MetaTrader 5, including the Depth of Market, separate accounting of transactions and orders, hedging and netting order accounting systems, allows you to create trading robots with new capabilities.
A special development environment MetaEditor is integrated into the platform, designed for writing Expert Advisors, and an advanced strategy tester makes it possible to test Expert Advisors more efficiently.
What determines robots profitability
An important factor for a stable and profitable automatic trading is the conditions of a forex broker. Grand Capital provides the most optimal conditions for using advisors on the market:
ECN Prime - Forex account best suited for scalpers due to fast execution and low spreads;
MT5 - an account in the MetaTrader 5 terminal, where the wide functionality of the platform and experts created for it is fully revealed;
Micro - an account with a deposit of $ 10 or more is ideal for testing in live trading mode and for novice traders.
A wide selection of currency pairs, metals, CFDs and cryptocurrencies is available for trading.
On all types of broker accounts, slippages and requotes are completely excluded, as well as disconnections that can disrupt the operation of the advisor.